2018 FY Results Presentation - 28th February 2019 - Alantra
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2018 FY Results Presentation 28th February 2019
Index 1. Executive Summary
2. Financials
3. 2018 highlights in Asset Management
4. 2018 highlights in Investment Banking
5. Annex
Private and Confidential
21. Executive Summary 3
1. Executive
summary
I. Financial Statements for 2018 FY
Net revenues reach €200.9Mn (+47.6%), growing in both Investment Banking and Asset Management divisions
▪ Net revenues from IB and AM divisions grow by 47.0% and 50.5% respectively
▪ The AM division continues its growth both in management fees (+11.6%) and performance fees (+132.8%). Performance fees are
related to the divestment of older Alantra PE portfolio companies and the divestment of QMC II
The increase in expenses to €140.0Mn (+41.3%) is due to the incorporation of new teams (including the integration in the
consolidation perimeter of Alantra UK team and Alantra Switzerland) and a higher variable remuneration directly linked to the
performance of the business
Net profit reaches €35.0 Mn (+15.6%), €30.8 Mn corresponding to the fee business, €5.6 Mn to the investment portfolio and
-€1.5 Mn to other results
2018 FY ▪ Net profit from the fee business has grown by 16.9%
▪ Net profit from the investment portfolio has increased by 39.2%
Strong shareholder remuneration policy: the Board of Directors will propose the full distribution of its net profit to shareholders
▪ A payment of €0.41 per share will be proposed to the AGM
▪ Together with the €0.50 per share paid in November, the total shareholder remuneration for 2018 will be €0.91 per share
▪ This implies a 100% payout and an increase of 7.9% vs. last year
The Group maintains its strong balance sheet as of 31st December 2018
▪ €202.9 Mn of shareholder’s equity attributable to the parent
▪ €120.1 Mn of cash and cash equivalents, deposits and a monetary fund
Private and Confidential
41. Executive
summary
II. A year of strategic alliances and intense activity in Asset Management
2018 AM Adding new
highlights: +€8.8Bn +60 +6 investment strategies
Adding new asset class
a strategic professionals New European Fund of funds
partnership AUM’s1 AM offices Co-investment Infrastructure
with ACP Secondaries
A year of strategic alliances FY 2018 in review: a year of intense activity
Strong investment and divestment activity
During 2018, Alantra’s private equity area completed 5 investments, 1
Partnership with Access Capital Partners2, a pan- add-on and 3 divestments, the private debt team 6 investments, 2 add-
European private asset manager with €8.8Bn1 ons and 3 divestments and real estate completed 5 investments
AUM’s
Relevant growth in AUM´s
Alantra, Alantra’s Wealth management Total AUM’s significantly increased due to the partnership with ACP,
the launch of new funds and the organic growth of our products
executives and Grupo Mutua have agreed to the
acquisition by Grupo Mutua of 50.01% of the
share capital of Alantra Wealth Management2
New funds launched
Alteralia II and QMC III have been raised during the year
Alantra PE teams with Partners Group to launch Excellent performance
secondary vehicle for Alantra PEF II portfolio Alantra PE achieved 2.0x MOIC return for its investors, from the launch
of the secondary vehicle for the remaining portfolio of PEF II
The PE team was awarded as “Best Spanish LBO fund” and the “Best
Large Market Deal of the Year” during 2018 and
Alantra’s private Debt Fund leads the 2018 Spanish hedge funds
ranking with a return of more than 6%3
Private and Confidential 1) Funds historically raised since inception
2) The closing of the acquisition of a strategic stake in Access Capital Partners and the sale of a stake in the wealth management business to Grupo
5 Mutua are still subject to the approvals by the respective authorities
3) According to Inverco1. Executive
summary
III. Relevant corporate and business achievements in the Investment Banking division
2018 IB
Full integration of the More than 70 IB professionals joined Alantra
highlights 202 Swiss, French and in 2018, with a significant improvement in
deals Italian partners both our sector and product specialization
Corporate highlights FY 2018 in review
Investment Banking Activity
Alantra expands its global technology practice 202 transactions advised with a well balanced mix of products and sectors
by adding a specialized team in San Francisco Average fee per transaction1 of €958K (+24% vs. 2017)
Strengthening Alantra’s presence in China by Strong year for N+1 Singer2, having raised +£750Mn of capital for clients, with an
incorporating four senior professionals aggregate equity raised of £3.7Bn since 2013
Good progress made towards the upgrading turn: (i) better sector diversification,
Acquisition of KPMG UK’s global loan portfolio (ii) increasing fee sizes in all products, (iii) upward trend in number of high fee
deals and (iv) good quality cross office activity
advisory business to create the European leader
in banking portfolio advisory
Integration of Switzerland, France & Italy CF teams
Capital increase of 1,458,852 Alantra Partners shares contributed to the Swiss,
Incorporation of an Equity Capital Markets team French and Italian partners in exchange of their stakes in the local entities
in Italy
This represents a dilution of 3.78% for the existing shareholders of Alantra Partners
Private and Confidential 1) M&A and CPA signed deals in 2018
2) The activity of capital markets of Alantra is carried out in the UK through N+1 Singer, where Alantra holds a stake of 27%
62. Financials 7
2. Financials
I. Net revenues reach €200.9Mn
Net revenues 2018 FY (€’000) Net revenues by division 2018 FY (€’000) Breakdown of AM revenues by type (€’000)
64,942
+47.6% 200,890 Performance
200,890 fees
Total AM 1,188 +132.8%
136,127 +50.5% 43,152
64,942 32,239
136,127
1,276 13,848
43,152
Total IB 134,760 Management
+47.0% 29,304 fees 32,703
91,699
+11.6%
2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY
Investment Banking Asset Management Other Management fees Performance fees Total
▪ Net revenues of €200.9 Mn, an increase of 47.6% vs. last year
▪ Net revenues from IB and AM divisions grow by 47.0% and 50.5% respectively
▪ The IB division grew to €134.8Mn
▪ The AM division continues its growth both in management fees (+11.6%) and performance fees (+132.8%)
▪ Performance fees have grown significantly and are related to the divestment of older Alantra PE portfolio companies and the
divestment of QMC II
Private and Confidential
82. Financials
II. Operating Expenses have grown by 41.3%, reaching €140.0Mn
Operating expenses 2018 FY (€’000) Breakdown of personnel expenses 2018 FY (€’000)
+41.3% 140,002 +42.4%
101,311
38,691
99,084
71,145
Other opex1 52,553
27,939
+38.5% Fixed
36,477 +44.1%
101,311
71,145 Personnel Variable 48,758
+42.4% 34,668
+40.6%
2017 FY 2018 FY 2017 FY 2018 FY
Other operating expenses1 Personnel expenses
Variable Fixed
▪ 74% of the increase in operating expenses is related to personnel expenses
▪ The increase in fixed personnel expenses amounts to €16.1Mn, of which 66% is related to the incorporation of new teams (inorganic
growth), including the integration in the consolidation perimeter of Alantra UK team and Alantra Switzerland
▪ Higher variable remuneration directly linked to the performance of the business, this representing 34% of the growth in operating
expenses
▪ Other opex1 has increased to 38.7Mn (+38.5%), again mainly related to the incorporation of new teams
Private and Confidential 1) Includes: Amortization, impairment and other operating expenses
92. Financials
III. Net profit of €35.0 Mn (+15.6% vs. last year)
2018 FY net profit breakdown (€’000) Evolution of the net profit attr. to the parent (€’000)
+15.6%
5,638 +16.9%
(1,456) 35,031
35,031
30,849 30,316 30,849
2017 FY
26,388
2018 FY
+39.2%
5,638
4,050
Fee business Portfolio Other result Net profit Net Profit attributable to Net Profit derived from Net Profit derived from
attributable to the the parent company fee business portfolio
parent
▪ Net profit is made up of €30.8 Mn corresponding to the fee business, €5.6 Mn to the investment portfolio and -€1.5 Mn to other results
▪ Net profit from the fee business has grown by 16.9%, due to an improved performance across all business divisions
▪ Net profit from the investment portfolio has increased by 39.2% and has mainly arisen from the sale of some portfolio assets
▪ Other results are mainly related to difference in exchange rates, financial interests and goodwill impairment related to corporate
transactions
Private and Confidential
102. Financials
IV. Other items of the income statement
Bridge from operating profit to net profit 2018 FY (€’000)
60,890 2,453
(824)
(14,083)
(13,405) 35,031
Operating Profit Net Finance Result of Non-controlling Income Tax Net Profit attr. to
Income companies Interests the parent
registered by the company
equity method
▪ The negative financial result of -€0.8Mn is made up of the temporary deterioration of trade receivables (-€4.8Mn), partially offset by the
generated fee income attributable to the portfolio (€4.0Mn)
▪ Result of companies registered under the equity method has decreased by €1.0Mn as the Swiss company is no longer accounted under the
equity method, being now fully integrated
▪ The increase in non-controlling interests (+€10.2Mn vs. 2017) is due to the consolidation effect of the performance fees generated in 2018
Private and Confidential
112. Financials
V. The Group maintains its strong balance sheet as of 31st December 2018
€’000
859 137,408 320,857 320,857
47,626 107,602
12,141
76,782
202,942
10,313
183,449
81,177
102,272
€29,790 – Portfolio
€9,949 – Monetary fund
€7,203 – Other non current financial assets
€683 – Other financial assets
Cash and cash Other current Total current Intangible Investments Non current Deferred tax Total non Total assets Shareholders' Non-Controlling Liabilities Total liabilities
equivalents assets assets assets and accounted for financial assets assets and current assets equity interests & equity
property plant by the equity other non
& equipment method current assets
▪ €202.9 Mn of shareholder’s equity attributable to the parent
▪ €120.1 Mn of cash and cash equivalents, deposits and a monetary fund1
▪ Non current financial assets include a portfolio of investments in products managed by the group valued at
€29.8 Mn
▪ There has been an increase of €12.3Mn in the portfolio since December 2017, due to the investments in
the group’s managed funds as they are being invested
Private and Confidential 1) €102.3 Mn of cash and cash equivalents and €17.9 Mn of deposits and a monetary fund (€9.9 Mn in a monetary fund and €7.9 Mn in deposits
included under Other current assets)
122. Financials
VI. Strong shareholder remuneration policy
▪ An interim dividend on 2018 profit of 0.50 euros per share was paid on December 17th, 2018
▪ The Board will propose to the Shareholders’ Annual General Meeting, (to be held on 29 April), the full distribution of its net profit to
shareholders, which implies an additional payment of 0.41 euros per share
▪ If approved, shareholder remuneration on FY 2018 results will amount to 0.91 euros per share (+7.9% vs. 2017), implying a 100% payout
and a dividend yield of 6.2%3
▪ Earnings per share will have increased by 9.0% in 2018 versus 2017, reaching 0.93 euros per share
▪ Taking into account the aggregate dividends distributed during 2018 (0.87 euros per share) and the share price as of 31 December,
shareholders’ value has increased by 8.6% since January 2018
Shareholder remuneration in 2015, 2016, 2017 and 2018
Shareholder remuneration Earnings per share1 Payout2 Dividend yield3
0.84 0.91
0.60
0.50
2015 2016 2017 2018
1) The Group's diluted earnings per share are calculated by dividing its net profit in a given period by the weighted average number of shares outstanding
Private and Confidential
during that period, excluding the average number of shares held as treasury stock; 2) Although the payout has been 100%, there is a small difference
13 between the dividend and the EPS in 2018. This is because the dividend calculation considers the number of shares outstanding at the end of the year, while
the EPS calculation considers the weighted number of shares outstanding during the period; 3) The dividend yield has been calculated dividing the dividend
per share corresponding to 2018 by the average closing share price during 2018 (14.72 euros per share)2. Financials
VII. Significantly outperforming both Ibex 35 and Ibex small caps in 2018
Evolution of Alantra’s share price vs comparable indexes during 2018
Dividend payment 0.37 H1 2018 results Q3 2018 results
Q1 2018 results
euros per share (26/07/2018) (25/10/2018)
(26/04/2018)
2017 results and dividend (11/05/2018)
announcement of 0.37€ per Dividend payment of
share (23/03/2018) Shares from capital
0.50 euros per share
increase start trading
( 17/12/2018)
(24/10/2018)
Var.
2018 FY
2.2%
-9.0%
-15.3%
Dividend announcement
of 0.50 euros per share
(05/12/2018)
5 sep-15 oct-15 nov-15 nov-15 dic-15 ene-16 ene-16 feb-16 mar-16 mar-16 abr-16 may-16 may-16 jun-16 jul-16 jul-16 ago-16 sep-16 sep-16 oct-16
Ibex 35 Ibex small caps Alantra
2018 FY evolution
Price Marketcap (€Mn) Share price 31/12/2018
Min 12.20 471.3 Price Marketcap (€Mn)
Max 16.60 617.1 13.90 537.0
Avg. 14.72 552.4
Private and Confidential
143. 2018 highlights in Asset Management 15
3.1 Corporate Highlights 16
3. 2018 highlights
in Asset
I. Partnership with Access Capital Partners Management
3.1 Corporate Highlights
▪ With this transaction, Alantra adds fund of funds, co-investment and secondaries strategies to its existing direct investment
activities
▪ Through the partnership with ACP, Alantra will now also offer its clients infrastructure as an asset class
Snapshot of the firm ▪ Launched in 1999
Private ▪ Funds of Funds / Co – Investments / Secondaries
€8.8bn ▪ Focus: European small and mid market firms
60+ 49% Equity
Funds raised ▪ 620 companies currently in portfolio
Professionals Alantra stake1 ▪ 200+ institutional clients
since inception
20+ years
of history providing 250+
superior return to investors Institutional investors ▪ Launched in 2008
▪ Funds of Funds / Direct investments
Infra ▪ Focus: Western Europe
▪ 16 direct investments completed
▪ Brownfield projects in transportation, energy &
utilities and communications
▪6 European offices: Paris,
Brussels, London, Helsinki, ▪ Launched in 2011
Munich, Luxembourg ▪ Funds of Funds / Co – Investments / Secondaries
Private ▪ Focus: Western Europe
Debt ▪ 18 direct investments completed
▪ Debt type: mezzanine, subordinated debt and
unitranche
Private and Confidential 1) On December 19th 2018, Alantra entered into legally binding agreements to initially acquire a 24.5% in ACP, the closing being only subject to regulatory approval.
In addition Alantra has a call option for another 24.5% stake. The remaining 51% stake, will be held by senior ACP executives
173. 2018 highlights
in Asset
II. Alantra Wealth Management creates a joint venture with Mutua Madrileña Management
3.1 Corporate Highlights
▪ Alantra, Alantra’s Wealth Management executive partners and Grupo Mutua have agreed to the acquisition by Grupo Mutua of
50.01% of the share capital of Alantra Wealth Management
Valuation of Alantra WM (100% EV) Shareholding after the transaction
Transaction
highlights
€48Mn - €60Mn1 Mgmt. team
50.01% 25% 25%
Snapshot of Alantra Wealth Management
c. 50 +25 €1.8Bn >€200mn
Avg. increase per year
Professionals years of experience AUM
since inception
6 offices >740 >€1Mn
throughout Spain Family groups Net worth individuals
Private and Confidential 1) The additional variable payment (earn out) corresponding to the incremental valuation (up to €60Mn) will be determined according to the level of
achievement of Alantra’s Wealth Management business plan for the period 2018-2022
18III. Alantra Private Equity teams with Partners Group to launch secondary 3. 2018 highlights
in Asset
vehicle for Alantra PEF II portfolio Management
3.1 Corporate Highlights
▪ The transaction entailed the transfer of the remaining PEF II portfolio assets to a new secondary vehicle, led by
Partners Group
▪ Alantra PEF II investors benefit from the transaction
Liquidity solution for those 2.0x Participate in further value
who opt for selling MOIC creation for those who rolled over
▪ Alantra PE continues to act as investment manager of the new vehicle
▪ Alantra together with the management team holds a 3% stake in the new vehicle
Private and Confidential
193.2 Activity Highlights in AM 20
3. 2018 highlights
in Asset
I. Alantra Asset Management: a pan-European diversified asset manager Management
3.2 Activity Highlights in AM
Alantra offers its clients unique access to a wide range of investment strategies (direct investments, fund of funds,
co-investments and secondaries) in six highly specialized asset management classes
(private equity, active funds, private debt, infrastructure, real estate and private wealth management)
Alantra Asset Management
European Fund of Funds / Private
Direct Investments Co-Investments & Secondaries Wealth Management
€2.1Bn AUM’s €8.8Bn AUM’s1 €1.8Bn AUM’s
Private Active Private Private
Equity Funds Equity Debt
Private
Real Estate Infra
Debt
Private and Confidential 1) Funds historically raised since inception
213. 2018 highlights
in Asset
II. Direct investments: Fee earning AUM’s as of 31st December 2018 Management
3.2 Activity Highlights in AM
Fee earning AUM’s of direct investments
Real Estate
148
Private Debt
278 + €233Mn
Active Funds Fee earning AUM’s
(vs. Dec 2017)
830
Private Equity
729
Total fee-earning AUM: €1,985 Mn
Total Assets under Management: €2,138 Mn
Private and Confidential
223. 2018 highlights
in Asset
III. Strong activity and market recognition in Private Equity Management
3.2 Activity Highlights in AM
▪ 5 successful investments and 1 add-on by Alantra PEF III, having invested 46%1 of the fund until now in 6
portfolio investees, representing 53% of total PEF III funding
▪ In addition, Alantra Private Equity area completed three divestments in 2018 and launched a secondary Awards
vehicle for Alantra PEF II portfolio, a transaction led by Partners Group
2018 Investments
1 2 Best Spanish
Entry date: July 2018 Entry date: Apr 2018 LBO Fund
Acquisition of a majority stake in Spanish telecom Acquisition of Hiperbaric, an engineering company
company Grupo Ingenium Tecnología. The firm is a focused on High Pressure Processing (“HPP”)
holding company focused on infrastructure development equipment for the food industry
Best Spanish LBO Fund Award during
and network services in Landline and Mobile Telephony the 9th edition of the Private Equity
Exchange Awards
3 4
Entry date:
Apr 2018 & Oct 2018 (add-on)
Entry date: Feb 2018
Best Large Market
Acquisition of 65% of the Spanish company Unión
Martín, one of the national leaders in the production and
Acquisition of a minority stake in the frozen bakery Deal of the year
company Monbake (a merger between Berlys and
marketing of seafood
Bellsola)
Unión Martín completed the acquisition of a relevant Alantra was awarded with the Best
stake in Moroccan Fine Fishing M&A Deal of the year by the Spanish
add-on 5 Venture Capital & Private Equity
Entry date: Feb 2018 Association for the sale of Berlys
Acquisition of Portuguese company ROQ, leading (Panasa) to Ardian, multiplying the
manufacturer of machinery and equipment for investment by 3.3x
the textile printing and packaging industries
Private and Confidential 1) Excluding the add-on transaction as it has been fully paid with cash available at the parent company (Unión Marín), not requiring further funds from
PEF III investors
233. 2018 highlights
in Asset
IV. Stable growth in AUM’s for both EQMC and QMC strategies Management
3.2 Activity Highlights in AM
As of 31st Dec. 2018, AUM’s in active funds reached €943 Mn, representing 15% increase versus 31st Dec. 2017 (+€121Mn)
AUM’s 2018 AUM’s Funds Performance2 since
Return 20182 IRR since inception2
31st Dec 2018 evolution inception vs. benchmark
1
Since 2010, the fund’s NAV per share
EQMC € 829 Mn1 + €164 Mn (16.0 %) + 15.1 % has gone up c.4x, outperforming by
176% its relevant index
2 QMC II (close-ended fund): since its
Divestment Divestment inception in July 2013, the fund’s NAV
QMC II + 1.3 % + 15.8 % per share has gone up by 1.82x3,
phase phase
outperforming by 520 bps3 the Ibex
Medium Cap Index
QMC III: Given the good results of QMC II, a new QMC fund has been launched. The successor fund has an evergreen structure and is currently in fund raising/investment phase
3 QMC III (open-ended fund): since its
inception in October 2017, the fund
QMC III € 73 Mn + € 28 Mn (7.3 %) (3.9%) has already outperformed by 97 bps
the Ibex 35 Index and by 127 bps the
Ibex Medium Cap Index
Total € 943 Mn + € 121 Mn
Private and Confidential 1) Includes €113Mn of secured commitments
2) As of 31st December 2018
24 3) QMC II Fund and Ibex MC Index adjusted by capital drawdowns and redemptions for comparison purposes3. 2018 highlights
in Asset
V. Very successful year for Private Debt Management
3.2 Activity Highlights in AM
During 2018, the Private Debt team executed 6 new investments, 2 add-ons and 3 full divestments
Investments Divestments
Investment in the leading company in the sector of
Jan bathroom furniture to finance the acquisition of the Jan Spanish manufacturer of equipment for physiotherapy
2018 shower tray manufacturer Fiora 2018 and aesthetics
Aug. Investment in Grupo Dimoldura, which specializes in
the design, development and manufacturing of interior Feb Spanish provider of integrated outsourcing services for
2018 2018
doors and moldings the human and veterinary pharmaceutical industries
Sept. Investment in Mark'ennovy, which specializes in the July Company specialized in digital solutions for the retail
2018 manufacturing of customized contact lenses 2018 sector
Oct. Investment in Conesa, the leading tomato
2018 processing company in Europe
Dec
Investment in Kompuestos, manufacturer of color Alantra’s Private Debt Fund leads the 2018
masterbatches, additives and mineral fillers for the
2018
plastic industry Spanish hedge funds ranking with a net return
of more than 6%, according to Inverco
Investment in a leading company of the food sector in
Confidential Dec Spain. This has been the first investment of the second
2018
debt fund
▪ Given the good results of the first debt fund, the Private Debt team has successfully held a first closing of the second fund
amounting to c.€140Mn. The target size for the second fund has been increased to €175Mn - 200Mn
▪ Alantra´s second debt fund made its first investment in December 2018
Private and Confidential
253. 2018 highlights
in Asset
VI. A year of delivery for the RE team Management
3.2 Activity Highlights in AM
▪ During 2018, Alantra REIM has invested in five RE assets, with an aggregate investment of c. €100Mn
▪ 4 out of the 5 investments have been made in accordance to the strategic target of building a 4-6 hotel portfolio of c.
€200Mn AUM’s
521 Hub La Sella Golf Resort & SPA Islantilla Golf resort
Asset type: office Hotel: La Sella Golf Hotel: Islantilla Golf
buildings Resort & SPA resort
Location: Rivas Location: Denia, Spain Location: Huelva,
Vaciamadrid, Spain Spain
186 27 hole-golf 204 27 hole-golf
Rooms course Rooms course
4 restaurants & Spa & thermal
Spa 5 restaurants
La Sella residences bars baths
2 paddle
Gym Outdoor pool Beach club
courts
Asset type: turistic
apartments 5 Swimming 3 soccer
pools courts
Location: Denia, Spain La Sella Golf course
▪ Acquisition of 28 apartments in La Sella Acquisition of 27 hole-
(buy-to-rent) golf course adjacent to
Already 4 investments
La Sella Hotel in the hotel portfolio
Private and Confidential
264. 2018 highlights in Investment Banking 27
4.1 Corporate Highlights 28
4. 2018 highlights
in Investment
I. Expanding and reinforcing our global footprint Banking
4.1 Corporate highlights
Alantra expands its global technology practice by Alantra strengthens its Chinese presence with four
adding a specialized team in San Francisco new senior professionals
▪ Enterprise Software
5 2 ▪ Financial Technology
▪ Data
+4 1 ▪ Cross-border
M&A for China
Professionals MDs Senior Prof. MD
▪ Internet, Digital Media
▪ Alantra’s global Technology team grows to 20+ professionals, with a ▪ Alantra has reinforced its Chinese team by adding 3 senior bankers in
combined global track record of over 50 transactions1 Shanghai and 1 senior Director from Alantra’s European team
▪ San Francisco represents Alantra’s third location in the US after ▪ Richard Zhu, with over 15 years of experience in financial services
Boston and New York and mgmt. consulting, will head Alantra’s Chinese M&A activity
▪ The team is led by Irfan Iqbal, who has over 15 years of technology ▪ He will be joined by a Director, a VP and a Director from the
investment banking experience European team
▪ The new West Coast presence will bolster access for Alantra’s
clients to the world’s leading technology ecosystem
▪ Gain deep domain expertise in critical technology subsectors
Private and Confidential 1) Advised in the last 5 years
294. 2018 highlights
in Investment
II. Creating the European leader in banking portfolio advisory Banking
4.1 Corporate highlights
Alantra has acquired the Portfolio Solutions Group (“PSG”) business from KPMG UK, which advises financial institutions
and investors in developing and implementing strategies for managing their asset portfolios
The joint team has specialized teams in 6 countries, becoming the
PSG: snapshot of the team
leading portfolio advisory unit in Europe
44 100+ July ‘18
Business Transactions Joining Alantra
prof. (since 2014)
London
c. 75 Dublin
7 prof.
14 prof.
3 €180Bn+ Professionals
Milan
Partners Volume trans. 6 prof.
Lisbon
(since 2014)
6 3 prof.
Madrid
29 prof.
Athens
Partners 15 prof.
10 €16Bn+
MD’s & FV1 of current
Directors Mandates €260Bn
Transacted since 2013
Alantra CPAI offices
Private and Confidential 1) FV stands for Face Value
304. 2018 highlights
in Investment
III. Incorporation of a capital markets team in Italy Banking
4.1 Corporate highlights
Italy starts a new Equity Capital Markets activity and strengthens the team with new key recruitments
The team will provide Italian corporates and institutional investors the following services:
6
Business
professionals 1 2 3
Corporate ECM
Research
Broking transactions
2
MD’s Mainly acting as global
On Italian listed Coverage on listed small
coordinator/lead
companies -mid cap corporates
manager in IPOs
With the new team, Alantra will provide Corporate Finance and ECM services to its clients, becoming
the advisor of reference in the Italian small & mid-cap market
Private and Confidential
314.2 Integrations 32
4. 2018 highlights
in Investment
I. Integrations Banking
The Transaction
▪ On July 25, Alantra’s shareholders approved a capital increase via contribution in kind, whereby the Swiss, French and Italian
Alantra partners contributed their stakes in the relevant Alantra subsidiaries for 1,458,852 Alantra Partners shares, issued at a
nominal value of 3 euro and share premium of approximately 12.15 euro each
▪ The economic effective date is 1st January 2018
▪ As part of the roll up the partners have agreed to a 6 year lock-up period and leaver clauses to protect shareholders’ value
Impact on shareholding Shareholding post-integration
46.4%
3.78%
owned by
dilution
executives
Private and Confidential
334.3 Activity highlights in IB 34
4. 2018 highlights
in Investment
I. Well balanced deal volume across products and sectors Banking
4.3 Activity highlights in IB
202 deals advised in 2018 (+9% vs. 2017)
Deals by product1 Deals by sector3 FIFTH INDEPENDENT ADVISOR EUROPE (DEALS)
Mergermarket’s Europe Ranking by deal count
M&A FY 2018
48%
THIRD EUROPEAN PRIVATE PLACEMENT
BOOKRUNNER (VOLUME)
Dealogic’s EMEA DCM Rankings FY 2018
Strong year for N+1 Singer2, having
raised +£750Mn of capital for clients,
with an aggregate equity raised of
£3.7Bn since 2013
▪ Better sector diversification and increased activity in targeted sub- sectors
Progressing towards
the upgrading turn ▪ Increasing fee sizes in all products
▪ Upward trend in the number of high fee deals (>€1Mn success fee) - 36% over total4
€958k average fee4
(+24% vs. 2017) ▪ Good quality cross office activity (avg. success fee €1.3Mn)
Private and Confidential 1) ECM refers to Equity Capital Markets and CPA to Corporate Portfolio Advisory
2) The activity of capital markets of Alantra is carried out in the UK through N+1 Singer, where Alantra holds a stake of 27%
35 3) Excluding CPA deals
4) M&A and CPA deals advised in 2018 (excluding recently acquired KPMG’s loan portfolio advisory business – CPA International)4. 2018 highlights
in Investment
II. 2018 Transaction Highlights (i) Banking
4.3 Activity highlights in IB
2018 2018 2018 2018 2018 2018
Advisor to the Swiss company
Aebi Schmidt Group (ASH), a
Advisor to ParkJockey, a US- Advisor to the private equity
leading provider of products
Alantra advises Sun European based on demand parking start firm The Riverside Company Alantra advised Nexteam
system and services for cleaning
Partners on the sale of ELIX Alantra advises IK Inv. Partners up, on the equity raising from on the sale of Denmark- Group in the sale of a
and maintenance of traffic areas,
Polymers to Chinese Sinochem on the sale of Transnorm an international investor based DPA Microphones to minority stake to
on the acquisition of the US-
International Group to Honeywell Int. the Italian RCF Group Tikehau Capital
based MBC
Industrial Professional Aerospace &
Chemicals Auto Tech Industrial Machinery
Automation Microphones Defense
2018 2018 2018 2018 2018
2018
N+1 Singer1 has acted as
Sole Financial Adviser and
Alantra advises Capiton AG, Advisor to Maxam Group on Alantra advises Weener
Alantra advises Wilbur Curtis, a Bookrunner at the £202Mn
Intermediate Capital Group the capital reorganization of Plastics (3I portfolio company)
US based leading coffee Alantra advised Mitsui & co, IPO of Hipgnosis Songs Fund
and the Mgmt. team in the company, assisting Advent on the acquisition of Grupo
equipment manufacturer, on the Ltd. on the acquisition of Limitedon the Specialist
connection with the sale of on the sale process of its stake Proenfar, leading player in
sale of the firm to Groupe SEB Hans Kissle Company, LLC. Fund Segment of the Main
Prefere Resins (45%) to Rhone Capital Latin America Market
Food Service
Chemicals Food ingredients Chemicals Packaging Materials Technology
Equipment
Private and Confidential 1) The activity of capital markets of Alantra is carried out in the UK through N+1 Singer, where Alantra holds a stake of 27%
364. 2018 highlights
in Investment
III. 2018 Transaction Highlights (ii) Banking
4.3 Activity highlights in IB
2018 2018 2018 2018
Advisor to Spectris plc, UK N+1 Singer has acted as Joint
Alantra advises Banco Sabadell
Advisor to Henkel in the listed manufacturer of Bookrunner to PRS Reit in
on the sale of c.€6.5Bn of REO’s
acquisition of Aislantes measuring instruments and Alantra advised Andlinger connection with the Placing
to Cerberus (the largest RE
Nacionales, a Chilean tile controls, on the acquisition of & Company on the sale of of £250m to create a large
divestment in its history,
adhesives and building Concept Life Sciences (an SUSPA to Pascal Vanhalt scale portfolio of newly-
reducing almost all its exposure
materials company Equistone portfolio company) built, high quality homes
to RE assets)
Industrial
Distressed Banking Chemicals Energy Automotive Developers
Automation
2018 2018 2018 2018
Advisor to Ersel Investment Alantra advised Trigo SA on
Alantra advises Priveq Alantra advises Portobello Club (PE fund) on the sale the acquisition of Lumbee
Investment Fund, SEB VC and Capital on the sale of its process of Arbo SpA (portfolio Enterprises. Trigo is backed
other shareholders of Crem portfolio company company) to a consortium of by leading French private
International on its sale to Multiasistencia to Allianz investors, including Luxempart equity Ardian
Welbilt Inc Partners and Arbo mgmt. team
Food Service
Insurance market Distressed Banking Other Industrials Infrastructure Business Services
Equipment
Private and Confidential 1) The activity of capital markets of Alantra is carried out in the UK through N+1 Singer, where Alantra holds a stake of 27%
375. Annex 38
5. Annex
I. Consolidated income statement for 2018 FY
31/12/2018 31/12/2017 %
134,760 91,699 47.0%
64,942 43,152 50.5%
32,703 29,304 11.6%
32,239 13,848 132.8%
1,188 1,276 (6.9%)
200,890 136,127 47.6%
-
(101,311) (71,145) 42.4%
(52,553) (36,477) 44.1%
(48,758) (34,668) 40.6%
(35,831) (27,114) 32.1%
(2,086) (825) 152.8%
(774) - -
(140,002) (99,084) 41.3%
60,890 37,057 64.3%
3,970 5,389 (26.3%)
(4,794) (1,183) 305.2%
(824) 4,206 (119.6%)
2,453 3,433 (28.5%)
(14,083) (3,878) 263.2%
(13,405) (10,502) 27.6%
35,031 30,316 15.6%
30,849 26,388 16.9%
5,638 4,050 39.2%
ORDINARY NET PROFIT 36,487 30,438 19.9%
31/12/2018 31/12/2017 %
0.93 0.85 9.0%
0.93 0.85 9.0%
Private and Confidential
395. Annex
II. Consolidated balance sheet for 2018 FY
ASSETS LIABILITIES AND EQUITY
Private and Confidential
405. Annex III. Glossary (i) Identified business segments “Business Segments” refer to each operating segment or component identified and classified as such by Alantra that (a) engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the group); (b) whose operating results are regularly reviewed by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and (c) for which discrete financial information is available. “Investment Banking”. The identified Alantra business segment which (in keeping with the definition provided in the Prospectus filed with the CNMV on 28 July 2015 in conjunction with the application to have the new shares issued as a result of the Merger admitted to trading, hereinafter, the "Prospectus") provides financial advisory services to companies or entities on corporate transactions (corporate finance and M&A) and equity research and brokerage services to institutional investors. “Asset Management”. The identified Alantra business segment which, in accordance with the information provided in the Prospectus, consists of the management of and provision of advice in relation to various classes of assets for institutional investors, high net worth individuals/family offices and other professional investors through specialist investment funds or customer investment portfolios. “Corporate”. The identified Alantra business segment which encompasses the universe of revenues and expenses corresponding to Alantra's governance and development structure (corporate governance, strategic management, corporate and business development and corporate services such accounting and financial reporting, risk management and control, human resource management and legal services, among others) and which, either because they relate to the Group parent - as a listed entity - or the management of the Group as a whole, are not directly attributable to the Investment Banking, Asset Management or Portfolio segments. The Corporate segment also includes the invoicing of services related to Alantra Group companies that are associates, i.e., not fully consolidated. In light of Alantra's ongoing growth at both the corporate and business levels, the significance of the services encompassed by the Corporate area justifies its classification as an independent segment. “Portfolio”. The identified Alantra business segment which is defined, in keeping with that stated in the Prospectus, as the activity consisting of the pursuit of capital gains by taking ownership interests in companies, funds or investment vehicles managed by the Alantra Group's asset management teams and subsequently selling those interests. The current portfolio originated in two ways: (i) the universe of companies invested in by the Company in its former capacity - prior to the Merger - as a private equity firm and which at the date of the Merger had not yet been disposed of or sold; and (ii) Alantra's investments in vehicles managed or advised on by the Group. “Other”. It is defined, by default, as the host of items that do not correspond to any of the business segments (i.e., that are not part of either the Investment Banking, Asset Management, Corporate or Portfolio segments). Private and Confidential 41
5. Annex III. Glossary (ii) “Fee Business” is defined as the group or aggregate of the Investment Banking, Asset Management and Corporate segments which, as a whole, are referred to as the service provision businesses, whether those services be financial advisory or management, whose revenues materialise in the form of fees and whose expenses are those necessary for their pursuit and development, mainly comprising staff costs. The following is specifically carved out of the Fee Business: losses or gains deriving from the Group parent's investments in the companies that perform the aforementioned activities (such as, for example, gains unlocked on the sale of investments in companies or businesses, goodwill impairment charges or foreign currency gains or losses); those losses or gains are included under segment termed Other. ▪ The decision to allocate 100% of the activity encompassed by the Corporate segment to the Fee Business reflects the fact that the vast majority of the time and/or investment of the resources included under Corporate are devoted to managing the growth and complexity emanating from the Investment Banking and Asset Management segments. This concept is all the more relevant as it underpins several of the alternative performance measures (APMs) used. “Recurring Business”. The group or aggregate of segments comprising the Fee Business (Investment Banking, Asset Management, Corporate) plus the Portfolio segment. Alternative performance measures "Alternative performance measures" or "APMs" A measure of the past or future financial performance, financial situation or cash flows of a company other than the financial measures defined or described in the applicable financial reporting framework. “Fee Business Net Profit”. The profit generated from the provision of advisory or management services under the umbrella of the Fee Businesses (i.e., that corresponding to the Investment Banking, Asset Management and Corporate segments), whose revenues materialise in the form of fees and whose expenses are those necessary for their pursuit and development, mainly comprising staff costs. ▪ Fee Business Net Profit is calculated as the sum of profit attributable to owners of the parent corresponding to the above three segments. ▪ The markedly different nature of Alantra's two businesses (Fee Business and Portfolio) justifies the breakdown of Fee Business Net Profit attributable to owners of the parent in the Company's public financial disclosures. “Portfolio Net Profit”. The profit deriving from the investment in and subsequent disposal of shareholdings in companies, funds or other investment vehicles managed by the Alantra Group. ▪ Portfolio Net Profit is equal to the profit attributable to owners of the parent corresponding to the Portfolio segment. ▪ The markedly different nature of Alantra's two businesses (Fee Business and Portfolio) justifies the breakdown of Portfolio Net Profit attributable to owners of the parent in the Company's public financial disclosures. Private and Confidential 42
5. Annex III. Glossary (iii) “Recurring Net Profit”. The profit derived from the Group's recurring or ordinary activities, i.e., that generated by the Investment Banking, Asset Management and Portfolio segments. ▪ Recurring Net Profit is the sum of Fee Business Net Profit and Portfolio Net Profit. ▪ Recurring Net Profit is an important indicator, in relation to net profit (or profit attributable to owners of the parent), insofar as it helps users assess what part of the Group's bottom line is attributable to the recurring businesses and not extraordinary accounting entries. “Financial Leverage”. This metric is defined as the aggregate borrowings provided to the Group by banks, credit institutions and similar entities to fund its business operations. This measure excludes amounts due to employees, suppliers, companies within its scope of consolidation or their shareholders. It also excludes obligations to banks, credit institutions or similar entities when these obligations are specifically secured by assets in the same amount. ▪ Financial Leverage is calculated as the sum of balance sheet items grouped under “Bank borrowings” that meet the criteria defined in this APM. Hence the 2,446 thousand euros registered in the liabilities of the consolidated balance sheet as of 31st December 2018 are excluded. ▪ Financial Leverage is a meaningful indicator of changes in the Group's consolidated balance sheet. “Payout”. This metric is defined as the percentage of profits the Company pays out to its shareholders. ▪ It is calculated as the ratio between the total per-share sum distributed by the Company to its shareholders in respect of a given reporting period (whether in the form of a dividend or a distribution charged against reserves or the share premium account) and the diluted earnings per share generated during that same period. ▪ The payout indicates the extent to which shareholder remuneration is financed from profit for the year (or for the reporting period in question). “Dividend Yield”. The return earned by the Company's shareholders by means of the dividends they receive. ▪ The Dividend Yield is calculated as the ratio between the total per-share sum distributed by the Company to its shareholders in respect of a given reporting period (whether in the form of a dividend or a distribution charged against reserves or the share premium account) and the share price as of a given date (which date shall be that referenced when the AMP is disclosed). ▪ Shareholders earn a return in two ways: gains in the price of the shares they hold and the remuneration they receive in the form of distributed dividends, reserves or share premium accounts. The Dividend Yield is the APM or benchmark indicator for the latter source of shareholder returns. Private and Confidential 43
5. Annex
IV. Disclaimer
Alantra Partners, S.A. publishes this presentation solely and exclusively for information purposes. This presentation does
not constitute an offer to subscribe, buy or sell securities issued by Alantra Partners, S.A., or any other securities in any
jurisdiction.
Any information and forecasts, if any, contained in this document, have not been verified by an independent entity and,
consequently, its accuracy or completeness cannot be warranted. Neither Alantra Partners, S.A. nor any of the companies
within its group, nor its respective directors, executives or employees accept any responsibility whatsoever for damages
or losses that may derive from the use that the recipients make of this document or its content.
Private and Confidential
44Contact
Philipp Krohn
Investor Relations
Tel.: +34 917 458 484
investors@alantra.com I www.alantra.com
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